Energy market abusers could face jail under new proposals

LIBOR fiddlers could face up to seven years in jail under new proposals put out for consultation by the Treasury yesterday.

And other market benchmark indices could fall under similar regulations.

For example energy market benchmarks, which saw accusations of abuse and price-fixing earlier this month, could be subject to state regulation.

The proposals also follow those of Martin Wheatley, the head of the incoming Prudential Conduct Authority (PRA) next year, who called for Libor submissions to be audited and based on real trades.

“Recent events have illustrated that Libor might not be the only benchmark subject to attempted manipulation,” said Treasury minister Greg Clark. “We are consulting on whether further benchmarks should be brought within the scope of regulation.”